Hi everyone. I never have had perfect credit, by any means. I had a 30 day late here and there. Then in 2003, I broke my femur, and was off work for 5 months. After going back to work, I struggled with my bills for about 9 months, and was paying everything, a month or two late. I never could get caught up, so my wife and I filed chapter 13 bankruptcy. I have been in my bankruptcy repayment for 4 years now, and have one year to go. I will complete my payments, and be discharged in September of 2009.
I pulled my credit report yesterday, for the first time, since I filed, and it doesn't look good. According to my report on consumerinfo.com(I was given a 2 yr. subscription for free), my score is 529.
I have a released state tax lien from my county recorder. It was posted in july, and resolved or paid in august of same year. I know it says released, but is it possible to get that removed?
Also, I have been trying to learn from these forums, but am a little overwhelmed. If I go through all bad reports on my credit report, should I send DV letters to all of them? What about accounts listed as charged off? Some of the accounts listed as charged off are claims on the chapter 13 bankruptcy. A few are from before the filing.
I also have a couple of small CA claims from after the bankruptcy filing. One is a valid bill, that I plan to attempt a PFD letter to. The other is a medical bill for $40 that I don't recognize. Should I bother with a DV letter for a $40 charge, or just attempt a PFD to get rid of it?
Sorry, for the bombardment of questions. I am simply trying to get the ball rolling, and want to know which direction to roll. I just found out my wife is pregnant, and I am hoping to raise my score enough by spring, to pull some equity from my home for an addition, without having to pay a rediculous interest rate.
Thanks in advance.
By the way, I don't have any active credit accounts besides my mortgage, that are outside the chapter 13 right now. That may be hurting me as well.
Hi Brandon54
Before paying off any debt, you should always ask for debt validation to be sure whether the collection agency to whom you are paying back the debt actually owes your debt. Now if they validate the debt, then only proceed forward towards pay for deletion agreement and pay off the debt. However, you should always get the PFD agreement in writing before you pay it off. Increasing your score from 529 for a home loan is not an easy task and may take some time, probably a year or two. In fact with this credit score, it is very difficult to go for a new line of credit, like opting for a credit card.
Thanks for the reply. Will my credit score change any when my chapter 13 ends?
Chapter 13 bankruptcy stays in your credit report for 7 years from the date of filing of bankruptcy. Bankruptcy will stay under public records for ever, even if it is removed from the credit report. However, as soon as bankruptcy comes out of your credit report, your credit score will increase by 75 to 100 points. But to give a major boost to your credit score, you must begin credit repair soon after you file bankruptcy. Since you have filed a Chapter 13 bankruptcy, the best thing to improve your score is to make timely payments from your income towards bankruptcy obligations.
I setup my bankruptcy payments to come out of my check from day one. So I have never been late. Now I need to fix the little stuff outside the bankruptcy.
Hi brandon
If you make your bankruptcy payments on time and at the same time repay any new debts you have opted for after filing bankruptcy on time, I think that your credit score would improve after your bankruptcy payments are over. Till then I would suggest you not to go for any new line of credit because as soon as you go for a new line of credit, a hard inquiry may be conducted in your credit report which will lower your score.